The Gainesville City Commission will vote Thursday to transition garbage and stormwater fees from residents’ monthly utility bills to the annual property tax following a stalemate with the Gainesville Regional Utilities (GRU) Authority. 

The switch to property taxes will be accompanied by increases in fees in the coming years, though some apartment and condo complexes could see a rate reduction because of the new methodology.  

For garbage collection, city staff recommends keeping the current rates for the next fiscal year before implementing an approximate 4% annual increase after that. The increase would cover a new garbage collection contract with GFL Environmental and rising costs, Gainesville backup documents said.  

The new contract is also up for a vote on Thursday. Staff recommends a 10-year contract with GFL Environmental, the current contractor. The commissioners will also vote on where to haul the garbage, with staff recommending New River Solid Waste Association’s Regional Landfill instead of the Alachua County landfill. 

The total 10-year cost for garbage pickup and disposal is expected to hit $113 million. 

The city uses a four-tiered method for garbage, with the roadside cans costing $51.25 monthly for the largest can and $25.75 monthly for the smallest. A 4% increase would tick up the annual cost for garbage collection by $12.36 to $24.60, depending on the can size.  

On Thursday, the City Commission is set to vote on the change in payment, from the utility bill to the property tax, and flat rates for the next fiscal year. The meeting agenda says any deficit in the first year from switching to tax bills will be covered by the excess balance in the Solid Waste Fund. 

The largest changes will come on the stormwater side as the city looks to change billing to the property tax and change its methodology for charging apartments, condos and mobile home parks.  

For single-family homes, duplexes and mobile homes, the stormwater methodology will stay a flat rate per unit. These homeowners will see a $12 increase in the next fiscal year from a general rate increase as the city switches to property tax billing.  

If passed on Thursday’s second reading, apartments, condos and mobile home parks will change from a flat fee to a rate per square foot of impervious area—roadways, pavers, basketball courts, clubhouses, etc. It’s the same methodology currently used for non-residential (or commercial) properties, along with RV parks.  

Depending on the unit density and the number of amenities, the stormwater fees at apartments, condos and mobile home parks could increase or decrease by a dramatic percentage—though that percentage depends on the overall size of the current stormwater fee. 

In a City Commission presentation last week, real examples from Gainesville complexes showed 41% increases and 50% decreases in the stormwater fee for different condo configurations. 

Landlords and apartment complexes will have two shifts to think about. First, the new methodology that could change the stormwater fee depending on impervious surfaces and second, the fact that the fee payment will move to the property tax bill instead of tenants’ utility bills. The owner will have to absorb the cost of having to pay the fees or restructure its rents/contracts with tenants. 

In the examples given to the City Commission, one local apartment complex (not identified by staff) will see a 27% increase in the stormwater fee because of the methodology change, resulting in paying $5,872 more in the fee. That current fee is spread across tenants at the complex’s 258 units, whereas the new fee will be footed by the owner to then be reimbursed by tenants.  

Johnmichael Fernandez, director of local government affairs for the Apartment Association of North Central Florida, told the City Commission that many apartments in September will already be signing leases for 2028.  

Another apartment complex will see a $844 reduction in its overall stormwater fee—but it will still need to deal with the shift from tenant to owner. 

The Thursday vote is to implement both the new stormwater payment structure on tax bills and the new methodology for apartments, condos and mobile home parks.